Hi,
Many Indian IT companies have tied up with IBSN as a Tax preparation and filing partner for its employees. I being one of them filed my Taxes with IBSN, ensuring to pay extra for 7 Year Tax representations for any future Audits or Queries.
IBSN files Taxes with Itemized Deductions and charges hefty fees for planning of Itemized Deductions.
Recently there was a North Carolina Audit on my tax filing pertaining to inclusion of various Itemized Deductions. As per the Audit, these Itemized Deductions are not allowed and applicable and i was hence charged additional Tax penalties.
Inspite of response from IBSN, the Auditors proceeded with the Audit, ignoring their comments altogether and finally sent out a notice to me with the Penalty Amount.
There is complete lack of Accountability from IBSN in responding to my Queries inspite of repeated Follow-ups.
It seems their filing of Itemized Deduction is completely illegal and are keeping the Customer, out of loop on this illegality.
Its almost 2 weeks that i have been following up with them about the request for my Notice and with n number of emails, but neither their phones are reachable, nor are people responsive.
As my Itemized Deductions are excluded, i am eligible to claim the Itemized Deduction planning fee from IBSN. This is no way near in sight as this people are not responsive altogether.
I am really fed up with these Tax Service Provider and calling everyone facing this difficulty to come join hands and plan out a roadmap for Class Action Lawsuit.

I am in similar situation, IBSN is not responding back to calls/emails. I got in touch with the IRS agent. I was advised to file a compliant in Form 14157 available in IRS website.
I also got off a call with an attorney from Law firm. There advise is

1. If the Claims is within 7500 USD, we could approach the Small claims court.
2. I am also checking the option of filing legal suit for breach of contract
3. We could also write to AIPCA with regard to the practice.

They are clearly breaching the contract agreement. Apart from claiming non deductible expenses, they are charge your for unlimited returns. And when the audit query comes, they don't respond, which is clearly a breach of contract agreement. There is also monetary payment for this service charged and not performed.

I am just sharing the information i received. I am not an attorney.